Cost of Service Analysis

Environmental Rate Consultants, Inc. (ERC, Inc.) is a very specialized financial consulting firm comprised of financial consultants, computer programmers and Business Plan development and Process experts. ERC is a private financial/computer firm with over 50 years of combined experience in consistently delivering cost effective and on-time products. ERC's corporate office is located in the Cincinnati, Ohio / Northern Kentucky metropolitan area and has a satellite office in Mason, Ohio.

ERC prepares a detailed level of service and cost of service analysis for all Business Plan, water rate study, sewer rate study and storm water rate study clients. The cost of service and the corresponding user charges are calculated in our client specific rate model. The rate model is provided to the client at the end of each project. The client is then able to update the rate model and calculate their own future user charges.

Detailed Rate Model

The detailed ERC rate model is customized for each client. Every attempt is made to match the rate model to the client's budget and chart of accounts. Other features of the ERC rate model are provided below:

  • Can be developed using Microsoft Excel™ or Microsoft Access™;
  • Provides new rates of charge for a minimum of five years;
  • Provides rate options for client consideration;
  • Incorporates adjustments for uncollectibles, data errors, general fund cost allocation, inflation, senior citizen discounts and credits, if applicable;
  • Customer base growth rates and/or estimated usage rates are included and can be easily updated with actual data;
  • A Bonds Module may be optionally added that will calculate required reserves and coverage ratios;
  • Client is able to review unlimited 'what-if?' scenarios before rates are finalized;
  • All rate model assumptions including full-time equivalent staffing calculations are provided;
  • Client may choose to order a rate model user guide;
  • Client training is included in the project cost;
  • Rate model is provided to the client at the end of the project.